PGIM Provides $69M Refi for Phoenix Office Asset
The property is part of a larger 750,000-square-foot mixed-use development.
RED Development has obtained $69.3 million in refinancing for The Offices at The Grove, a 185,536-square-foot office building in Phoenix. JLL arranged the financing from PGIM.
The five-year, fixed-rate loan replaces financing obtained in 2023 from Western Alliance Bank, according to Yardi Matrix.
The property is a four-story building completed in the fourth quarter of 2022. The Offices at The Grove is fully leased to a variety of investment-grade tenants, including JPMorgan Chase, Clayco, First Solar, JLL, PwC, Caterpillar and Aon.
The building’s amenities include a rooftop pickleball court and pavilion, first-floor dining at Pyro, a Japanese izakaya bistro operated by Flagship Restaurant Group, and views of Camelback Mountain. The property also has access to 631 spaces in a shared parking structure and has achieved LEED certification.
The financing collateral consisted of the office building, Pyro restaurant, two retail spaces and an underground parking facility.
READ ALSO: How Grand View Arizona Could Shape Buckeye’s Next Chapter
The Offices at The Grove, at 4300 E. Camelback Road, serves as the office centerpiece of The Grove, a mixed-use development spanning more than 750,000 square feet.
On the larger campus, The Grove also features The Global Ambassador boutique hotel, 58 upmarket residential units at The Bergen, Banner Health Center Plus medical facility, and the Verizon 5G Performance Center, home to the NBA’s Phoenix Suns training facility.
JLL Capital Markets’ Debt Advisory team of President Kevin MacKenzie, Senior Director Jason Carlos and Associate Frank Choumas represented the borrower in the deal.
Phoenix office market shows resilience
As of midyear 2026, the Phoenix office market was relatively strong. Vacancies edged lower and remained below the national average, while asking rents increased year-over-year and construction activity was moderate, according to an August Yardi Matrix report on the metro. Phoenix is also among the nation’s top 10 by sales volume for office assets.
In October, Trinity Capital inked a long-term lease at 333 Tower, an office building at 333 N. Central Ave. in downtown Phoenix. Trinity will occupy the property’s top two-and-a-half floors and secure building-top signage rights. Foundation 8 is the landlord, while Newmark brokered the deal.
In August, Trammell Crow Co. and U.S. Realty Advisors completed the 145,000-square-foot office component of Sprouts Farmers Market’s corporate headquarters in Phoenix. The property also includes a 25,000-square-foot flagship grocery store and 11,000 square feet of additional retail space.
You must be logged in to post a comment.